Foto: Moonik. Reivindicando la profesión de economista: Turquía
Azimut, Italy’s leading independent asset manager, and Notus Portfoy Yonetimi (“Notus”), a Turkish independent asset management company, have signed an investment and shareholders agreement to start a partnership in Turkey. Notus is an asset management company with TL 168mn under management (equivalent to $76 mn) as at 28th February 2014.
Notus was established in 2011 by 3 partners each with over 25 years of experience in the Turkish and European financial industry. Notus mission is to provide a new breadth of discretionary portfolio management services driven by independence, investment discipline and risk management. The company manages discretionary portfolio mandates for 45 individuals and corporate clients ensuring diversified and efficient asset allocation plans across local and international markets. In addition, Notus is the manager of 2 local mutual funds with balanced strategies focusing on local fixed income and equities.
The Turkish asset management industry has $28bn in AuM as of January 2014 (of which more than 90% is invested in short term fixed income strategies) with around 41 asset management companies (of which 29 are independent) registered with the Turkish Capital Market Board. The industry AuM accounts for only 5% of the country’s GDP making it one of the less penetrated markets in the world. In addition, the dominance of banks time deposits absorbing more than 90% of the country’s savings offers a great potential for the success of independent wealth managers aiming to serve the evolving financial goals of Turkish clients.
Since 2012 Azimut, through AZ Global Portfoy (“AZ Global”), has pioneered the rise of the independent asset management industry in Turkey with the introduction of a unique model of integrated financial advisory leveraging on a new generation of 8 local funds. AZ Global is also (i) the fund manager of AZ Fund Lira Plus, aiming to convert in Euro the level of local interest rates and (ii) the advisor of AZ Fund Global Sukuk, the first European UCITS and Shariah compliant fund investing in Islamic bonds.
Subject to the regulatory approval by the competent authorities, Azimut, through AZ International Holdings S.A., will purchase 70% of Notus equity capital.
Global investors are moving toward a “risk-off” stance, taking on greater protection as the prospect of geopolitical instability grows, according to the BofA Merrill Lynch Fund Manager Survey for March.
Responding at a point of growing tension in Ukraine, 81 percent of investors said they see geopolitical risk posing a threat to financial markets stability – more than four times the reading one month ago. Twenty-seven percent of investors say that a geopolitical crisis is the biggest tail risk – up from 12 percent in February. At the same time, investors continue to express concern about the prospects for emerging markets – with sentiment towards China’s economy falling further.
Investors have reacted by showing reduced optimism about the prospect for corporate profits globally and by reining in risk. They have increased cash allocations, reduced equity holdings and taken on greater protection.
The proportion of investors taking lower than average risk in their portfolio has increased to a net 14 percent from a net 2 percent in February. A net 16 percent of global asset allocators say that they are overweight cash, up from a net 12 percent last month. Average cash balances remain high at 4.8 percent of portfolios. The proportion of asset allocators overweight equities has dropped by nine percentage points month-on-month to a net 36 percent. Demand for protection against sharp falls in equity markets has increased to its highest level in 22 months.
“With neither inflation nor recession posing a threat, we believe the equity bull market is far from over and investors should be putting excess cash into risk assets,” said Michael Hartnett, chief investment strategist at BofA Merrill Lynch Global Research.
“We see signs that recent exuberance in sentiment and positioning in Europe is waning. While Europe’s recovery remains in play, markets likely need to consolidate further before resuming their upward trend,” said John Bilton, European investment strategist.
Corporate optimism off highs
Investors have scaled back their belief in a vibrant recovery in corporate profit growth – but remain positive. A net 40 percent of global investors believe that global profits will improve in the coming 12 months, down from a net 45 percent in February.
At the same time, investor demand for companies to borrow and invest has eased. A net 34 percent of respondents say that corporate balance sheets are underleveraged, down from a net 40 percent last month.
Sectorial allocations this month reinforce a defensive mindset with a sharp fall in allocations towards banks and a rise in allocations to energy companies and utilities.
Hedge funds take risk-off stance
Hedge fund managers provide an illustration of the risk-off mentality taking shape in this month’s survey, having reduced both leverage and exposure to equities. The weighted average ratio of gross assets to capital has fallen to 1.34 times from 1.49 times, the lowest in 20 months. Thirty-one percent of hedge funds have a leverage ratio of less than one time – compared with 19 percent in January.
Weighted net exposure to equities has fallen to 29 percent, down three percentage points month-on-month from 38 percent in January and the lowest since June 2012.
Emerging market sentiment close to lows?
The investor panel has indicated that sentiment towards global emerging markets is close to reaching a low and that improvement is in sight. While the view towards China has deteriorated further, investors see scope to return to the region.
A net 47 percent of regional fund managers in Japan, Asia Pacific and global emerging markets expect China’s economy to weaken in the coming year, up from a net 41 percent a month ago. The proportion of global asset allocators underweight emerging market equities has risen two percentage points month-on-month to a net 31 percent – a new record low.
On the brighter side, investors have indicated that they see value in the region. A record net 49 percent of the global panel believes that emerging markets is the most undervalued of the regions, compared with a net 36 percent in January.
PineBridge Investments announced today that its Mexican private funds vehicle, Mexican Certificados de Capital de Desarrollo, or “CKD I” PBFF1CK 12, which is listed on the Bolsa Mexicana de Valores, has committed capital to five private market funds. The initial investments represent approximately half of the US $209 million (MX $2,681,250,000) capital commitments in CKD I. The selected funds provide access to investment opportunities in Mexico across growth equity, private infrastructure and private credit strategies.
During the third quarter of 2012, PineBridge launched the first pure private market funds portfolio through a CKD vehicle. PineBridge’s CKD I offering provides Mexican institutional investors with the opportunity to access a diversified portfolio of institutional quality private market funds, most of which would otherwise not be available to its investors, through a publically listed vehicle.
After the first round of selective investments, PineBridge’s CKD I portfolio is positioned to meet its investment objectives. Through its fund investments, CKD I has already provided investors with access to 10 underlying Mexican companies and projects in multiple sectors including telecommunications, logistics, e-commerce, fast food, housing and animation. CKD I investments will be focused solely in Mexico.
“We are enthusiastic about the opportunities in the Mexican private markets and the investments we are providing to our limited partners,” stated Steven Costabile, Global Head of the Private Funds Group at PineBridge. “The pipeline of institutional quality private market funds in Mexico continues to grow and we expect to fund significant investments in 2014.”
PineBridge’s CKD I has committed capital to the following funds:
Real Infrastructure Fund (Mexico)– provides growth capital to small- and mid-sized renewable energy projects in Mexico
Ventura Capital Privado Fund – provides access to larger transactions within the Mexican middle market
Alsis Mexico Housing Opportunities Fund Offshore– provides financing to private mid-sized Mexican real estate developers
Alta Growth Capital Mexico Fund II– provides growth equity capital to mid-sized companies in Mexico
Latin Idea Mexico Venture Capital Fund III– focuses on growth equity investments in the TMT sector
“Our goal is to build a diversified portfolio that provides top-tier access to the best opportunities in the middle market in Mexico. By significantly broadening the opportunity set, and focusing on growth equity, private credit and infrastructure, we are well positioned to deliver on this,” stated Alejandro Rodriguez, Director at PineBridge in Mexico City. “We are proud to be able to meet our clients’ needs, while continuing to bring attention to the investment opportunities in Latin America.”
“Our listed private funds portfolio structure has opened up a diversified opportunity set of private market investments for our clients. This innovative approach is bringing efficiency and rigor to the portfolio construction process with access to specialized opportunities,” stated Sergio Ramirez, Head of Americas Business Development at PineBridge.
Wikimedia CommonsPhoto: Esparta Palma. Lending For a Lifetime: Mexico Issues 100 Year Sterling Bond
Hot on the heels of the successful 100-year bond issued by utility giant EDF in late January (the first of its kind in sterling), Mexico followed suit last week in raising £1bn from investors with a bond maturing in 2114, priced to yield 5.75%*. Typically, these bonds are issued by high quality companies and governments given the long time horizon, and have been supported by demand from investors looking for higher yielding investments and those with long-dated liabilities (the Mexico 100-year bond has a duration of 18 years). The new issue proved popular, attracting a £2.2bn order book for a £1bn bond issue. This is the second time Mexico has raised a 100-year bond, following the USD bond in 2010.
Despite the recent uncertainties and asset price performance in some emerging markets, Mexico stands out as one of the few countries where fundamental reforms are helping to improve the country’s standing, with rating agency Moody’s upgrading Mexico’s debt to ‘A3’ in February. We believe there is a high probability of further rating upgrades as the other agencies follow suit. The EDF 100-year bond has performed very well since its launch earlier this year and while the risks for a utility are very different from those faced by the sovereign, investor take-up has been supportive. While we have a positive view on Mexico versus its emerging market peers, the extremely long-dated nature of these bonds means that investors also need to be wary of the future path of interest rates, and given the long-term nature of the investor base, the limited liquidity in secondary markets.
*Henderson participated in both the Mexico and EDF 100 year issues within a number of our portfolios.
James McAlevey, Head of Interest Rates at Henderson Global Investors
Foto cedidaCarla Goyanes. Carla Goyanes, Director of the Fashion Management MBA Program of Esden Business School in Miami
Carla Goyanes is the new Director of the MBA in Fashion Management of Esden Business School in Miami, USA. She holds a degree in Business Administration and has an MBA in Fashion Management.
Esden Business School will inaugurate its first program in Miami by the end of the year with the launch of the MBA in Fashion Management, ‘’in a bet to enter in a key market for the Fashion Industry’’, states Alberto Isusi, CEO of Esden Business School.
To achieve that goal, Isusi explains ‘’we count with the valuable contribution of Carla Goyanes. Not only she has great experience in industry but also she will be leading a talented team of professionals of the Fashion Industry with strong Marketing and Communication backgrounds. Their main objective is to ensure that students acquire the most advanced knowledge and specific skills related to Management in this field.’’
The Fashion Management MBA program from Esden Business School will start this coming October and will last for 10 months. It is aimed to those interested students in deepening and/or learning the specific business management characteristics of a rising industry. The basic requirements to apply are getting a bachelor’s degree, standard English level and a clear passion towards to the Fashion world.
Alvaro Dantart, Institutional Relations Director of Esden Business School explains ¨it is a MBA program focused on business management within the Fashion Industry. It is a unique opportunity available now in Miami, as there is no similar academic offer in any other Business Schools or Universities in Florida¨.
The program combines online sessions-taking advantage of the opportunities that new technologies provide as a didactic support- with classes at our campus -given by renowned professionals of the Fashion Industry such as managers, designers or creative directors-.
Esden Business Schools brings renowned faculty in the Fashion Industry from Europe, latam and United Statessuch as Juan López –Saks Fith Avenue Director-, Mónica Gómez-Cuétara –founder of Personal Shopper School-, Federico de Marin –Human Ressources Director for Latamn of Swarovski-, Jose María Arellano – 10 year General Director and creative director of JJA Group and now presiden of JAM Design USA and JAM Fashion Co LTD Hong Kong-, Manel Echevarría –Vicepresident for Latam an Caribbean areas-.
Carla Goyanes, MBA director assures ‘’students will not only learn skills such as economic, financial or team management but also essential matters related to integral communication, coolhunting or the crucial influence that the web 2.0 has in business development, everything focused on the Fashion and Beauty Industry.’’
Students will have the opportunity to attend a specialized training at The Marangoni Institute of Milan dedicated to ‘’Fashion Production and Luxury Brand Strategies’’.
The Fashion Management MBA program from Esden Business School responds to the industry´s needs of highly qualified professionals in these fields of expertise. The program provides students with skills in management that are applicable to the fashion environment, incorporates specific concepts related to design management, product development, marketing and communication strategies, and logistics in the fashion industry.
Lastly, Carla Goyanes explains ‘’nowadays studying Fashion is a rising trend and in an increasingly competitive environment, a better choice than enrolling in a specialized masters that promotes and facilitates professional integration, development and success for its students.’’
The increased tensions in the Ukraine have made ING Investment Management more cautious, but are no reason to alter their risk-on stance. However, they have lowered the overweight position in equities and look for more contrarian exposure in commodities and real estate, as it seems that the balance of opportunity has shifted towards these asset classes.
For now, there is little reason to significantly adjust our general risk-on allocation stance in place as both fundamental and behavioural dynamics are still in support of risky assets. At the same time, it has to be acknowledged that the risks surrounding this base case scenario have increased.
Real estate and commodities outperform global equities
They have lowered our equity overweight…
A modest risk reduction in thier tactical allocation stance seemed prudent last week. Thinking about how to execute this, ING IM took into account where regional sensitivity was most influential, where valuation was most stretched and where positioning was most concentrated. With global equities reaching a new all-time at the end of February, attractiveness in the previously relatively cheap European equity markets having been eroded in recent weeks and generally still most risk taking amongst investors focused on equities, we decided to lower our equity overweight from medium to small.
…and shift our focus towards real estate, commodities
This also aligns well with their increased desire to look for more contrarian exposures in our asset allocation stance. As investor consensus is still heavily tilted towards equities while real estate and commodities are generally still unloved by active market players, the balance of opportunity seems to have shifted to the latter two asset classes. This has already been visible in the relative performance of these asset classes since the start of the year (see graph). It is one of the arguments to gradually relocate their allocation focus from equities towards real estate equities and commodities. Both are now overweight positions.
To view the complete story, click on the attcahed document.
Foto cedidaPatrick Summer, Head of Property Equities at Henderson Global Investors. Henderson: The attractions of property equities
After 17 years at Henderson, heading the Global Property Equities team since 2004, and after 34 years in the property industry, Patrick Sumner will be retiring from Henderson Global Investors at the end of June this year. He was instrumental in starting the European, Asian and Global strategies, which today amount to more than $2.7 billion.
Guy Barnardand Tim Gibson will take over as co-heads of Global Property Equities. Guy is based in London and has been co-manager of the $1.2 billion Henderson Horizon Global Property Equities Fund since November 2008 and manager of the $600 million Henderson Horizon Pan European Property Equities Fund since September 2010. Tim is based in Singapore and manages the $350 million Henderson Horizon Asia Pacific Property Equities Fund. Tim will join Guy as co-manager of the Henderson Horizon Global Property Equities Fund. In addition, Guy and Tim will continue to manage other regional and global funds.
At the same time the team has been strengthened with the two appointments, one to be based in London and one in Singapore. Nicolas Scherf will join in London as portfolio manager, where he will take on responsibility for certain European portfolios and will assist in the running of the Henderson Horizon Pan European Property Equities Fund. Nicolas joins from Cohen & Steers Capital Management where he spent over 6 years as a property securities investment analyst.
Xin Yan Low will join as an analyst on the property equities team in Singapore. She spent the last six years at Bank of America Merrill Lynch as an equity research analyst covering Asia property equities. She will work with Tim Gibson and alongside existing analyst Yan Ling Wong on the Henderson Horizon Asia Pacific Property Equities Fund and on the Asian portions of other property equity portfolios. Both will start in the 2nd quarter of this yea
Tim Gibson adds, “With investors increasingly looking for alternatives to fixed income, we feel the listed property sector, with an attractive and growing income stream, is well placed for the years ahead. Guy and I look forward to building on Patrick’s success and working with our clients to develop the team and franchise further in the years ahead”.
Foto: Wallyg. AXA IM encarga a Tim Gardener la dirección global del nuevo Grupo de Clientes Institucionales
AXA Investment Managers (AXA IM) has announced the appointment of Tim Gardener as Global Head of the firm’s new Institutional Client Group, formed to reflect AXA IM’s focus on the investment needs of distinct client groups. Lisa O’Connor, currently European Head of Consultant Relations, succeeds Tim Gardener as Global Head of Consultant Relations.
Tim Gardener will lead the development of the firm’s offering and approach to institutional clients, including insurance companies, pension funds, and sovereign wealth funds. Elodie Laugel, previously Head of Solutions Development in AXA IM’s Multi Asset Client Solutions team, has been appointed Deputy Head of the Institutional Client Group. The global consultant relations team, led by Lisa O’Connor, is an integral part of the Institutional Client Group, representing the importance of consultants in both their traditional advisory role and as leading players in fiduciary management markets across the spectrum of institutional clients.
The Institutional Client Group is one part of AXA IM’s wider Client Group of 250 professionals led by Laurent Seyer. The division is in charge of developing AXA IM’s proposition by client segment (institutional, retail and wholesale), while coordinating and monitoring marketing and client relationship activities.
Commenting on the appointments, Laurent Seyer, Head of Client Group at AXA IM, said: “The leading asset managers of tomorrow will be those that are able to develop the strongest relationships with their clients. Our relationship with the AXA Group means that we are constantly challenged to stay at the forefront of financial innovation and that we have an in depth understanding of the needs of complex clients. The Institutional Client Group will ensure that we are leveraging this competitive advantage to the benefit of all of our clients. It will also support AXA IM in being as well positioned as possible to help its clients and consultants address the investment challenges facing them.”
M&G Investments, one of Europe’s leading asset managers, has reported record net retail fund sales of €8.9 billion in its established European markets and in Asia in 2013.
This marks a 46 per cent improvement on the previous year. Retail assets under management in Europe totalled €28.5 billion at the end of 2013, a 64% increase over the 12 months. They now represent 35 per cent of total retail assets under management.
Net retail fund sales were strongest in Italy, Spain, Switzerland and France.
At a group level, M&G posted total net inflows of €11.2 billion. M&G has attracted an accumulated total of €62.4 billion in net sales over the past five years.
Total assets under management were 7 per cent higher at the end of the year at €293.3 billion. External client assets rose 13 per cent to €151.4 billion, nearly treble their level at the end of 2008. Third-party clients now account for 52 per cent of the total assets under management at M&G, with the balance of the assets belonging to Prudential Group PLC, M&G’s parent company.
M&G’s most popular products were the M&G Optimal Income Fund, an international flexible bond portfolio, and the M&G Global Dividend Fund. During the year, 10 M&G retail funds attracted net inflows of at least £100 million (€117.8 million).
Ignacio Rodríguez, sales manager of M&G Investments for Spain, Portugal and Latin America says: “M&G enjoyed its most successful year yet in Europe. Measured by funds under management, our international business has grown at an annual compound rate of 79 per cent over the past ten years.”
Photo: Altavista 147. Thor Urbana Acquires Luxury Mall in Mexico City
Thor Urbana Capital, a real estate investment and development company based in Mexico City, recently acquired the luxury shopping center Altavista 147 which hosts several internationally renowned brands such as Louis Vuitton, Salvatore Ferragamo, Tiffany & Co., MaxMara, Carolina Herrera, among others.
“We are very happy to have acquired this gem in Altavista, situated in the southern part of Mexico City, an area in which culture, art, fashion and elegance are very present”, said Jaime Fasja and Jimmy Arakanji, Managing Partners at Thor Urbana. “This purchase reinforces our strategy of acquiring and developing fashion and lifestyle shopping centers with the best tenant mix, designs and in the absolute best locations in the country”.
Thor Urbana Capital is a real estate development firm formed by Thor Equities CEO Joseph J. Sitt and Mexican developers Jaime Fasja and Jimmy Arakanji. Based in Mexico City, Thor Urbana is a vertically integrated platform that specializes in sourcing, acquiring, developing, repositioning, leasing, managing, and disposing uniquely located retail, office, hotel and mixed-use assets in Mexico’s principal urban markets and main avenues.
With a management team that has over 120 years of experience developing triple-A real estate properties in Mexico, the United States, Europe and South America, Thor Urbana is uniquely positioned to capitalize on Mexico’s growing real estate market.
